— Just like we saw with $GOOGL and $META, the market is sending a brutal message to Big Tech: Stellar cloud growth is no longer enough if free cash flow goes negative. Amazon ($AMZN) just reported its Q3 earnings. While AWS accelerated to its fastest growth in nearly five years (up 39% to nearly $46B), the stock tumbled after hours. Why? Because the massive AI infrastructure bill is catching up to the bottom line. The Numbers 1. The Miss: Q3 revenue ($201.94B) and EPS ($1.89) both missed Wall Street's expectations. 2. The Cash Burn: Driven by aggressive AI buildouts, trailing 12-month free cash flow swung deep into negative territory to -$42.4 billion. 3. The Guidance: $AMZN is sticking to its massive $220 billion cash capital expenditure plan for 2026, and its Q4 revenue outlook came in a bit cautious. Is There a Common Theme with Google? Yes, absolutely. We are watching a clear structural shift across all hyperscalers right now: 1. Revenue vs. Cash Reality: $GOOGL posted strong cloud growth too, but was hammered because its CapEx spending outpaced operating cash flow, turning free cash flow negative. $AMZN is facing the exact same script: AWS is booming, but the heavy upfront cost of building out AI data centers is straining cash flow. 2. The "Show Me the ROI" Phase: The market is no longer giving tech giants a free pass just because they mention "AI." Investors are shifting their focus from top-line growth to immediate cash generation. If you're spending tens of billions on GPUs and data centers today, the market wants to know when that cash turns back into positive free cash flow. 3. Capacity Constraints: Just like $MSFT and $GOOGL, $AMZN's CEO Andy Jassy noted that AWS capacity is largely sold out into 2027 and 2028. The demand is undeniably real, the question is just how much debt and cash burn it takes to build the infrastructure to capture it. Takeaway for Investors The theme across Big Tech earnings this season is identical: The AI trade has split. Cloud growth gets you in the game, but free cash flow dictates whether the stock rallies or drops. Are you viewing these dips in $AMZN and $GOOGL as a massive buying opportunity for the long-term AI buildout, or are you staying cautious until free cash flow stabilizes? — This is for educational use only and not a financial advice. read more
A quick recap on disciplined options positioning heading into binary events: On October 21, I opened a short call position collecting $41/share in premium, capitalizing on spiked Implied Volatility right before the earnings report. Key Takeaways: 1. Full Profit Protection: The strategy did its job. Post-ER volatility crush wiped out the extrinsic value, allowing us to capture the full $41/share profit. 2. Lowering Cost Basis: Rather than passively holding through the event, monetizing volatility provided a direct cash cushion that fundamentally improves the overall trade structure. 3. Next Step — Accumulation at $200: With the premium fully banked and capital uncommitted, the next focus is patience. I'm actively looking to scale in and add to the position around the $200 mark. Trading isn't about guessing direction; it's about managing risk and executing high-probability setups. Best of luck to everyone navigating this earnings cycle! Let's get it. 🤝🔥read more
Intel ($INTC) has pulled back nearly 30%, creating a potential short-term bounce opportunity. My trading plan: * Entry: Start with HALF of the intended position. * Target: +8% upside. * Stop-loss: $56. * Strategy: Take advantage of a potential technical rebound while keeping risk controlled. I’m not going all-in immediately. Half position first, disciplined risk management, and let the trade play out. Trade the setup, not the emotions. Not financial advice. This is a short-term speculative trade. Always manage your risk and do your own research.read more
The space economy is bigger than rockets. It’s developing across three major layers: 1. CONNECTIVITY * $ASTS — Direct satellite-to-phone connectivity. * $SPCX — Starlink satellite broadband. * $VSAT — Connectivity for aviation, maritime and defense. * $AMZN — Amazon Leo satellite internet. 2. INFRASTRUCTURE * $SPCX — Reusable rockets, Starship and launch infrastructure. * $RKLB — Rockets, spacecraft and satellite components. * $FLY — Alpha rockets and Blue Ghost lunar landers. * $BA — Aerospace manufacturing and NASA launch systems. * $TSLA — Robotics and energy storage infrastructure. * $EQIX / $DLR — Data center and interconnection infrastructure. 3. COMPUTE * $SPCX — AI infrastructure and exploration of orbital computing. * $NVDA / $AMD — AI chips and computing hardware. * $MSFT / $META / $GOOGL — Cloud, AI models and infrastructure. * $ORCL / $CRWV / $NBIS — Expanding AI cloud and compute capacity. THE BIG PICTURE What makes SpaceX particularly interesting is its ambition to connect launch infrastructure, satellite connectivity and AI computing. Very few companies are positioned across all three layers. SpaceX is arguably the most integrated contender, although orbital data centers remain an emerging concept. Who captures the most value as the space economy develops — the launch providers, connectivity companies or compute infrastructure players? read more
Tokyo Electron’s annual outlook came in above analyst expectations, pointing to stronger-than-anticipated spending by semiconductor manufacturers. Why this matters: * AI infrastructure is driving demand: Chipmakers are accelerating investment to meet growing demand for AI processors and high-performance computing. * More equipment spending: Higher chip production targets can translate into increased demand for semiconductor manufacturing equipment. * Bullish industry signal: Stronger guidance from Tokyo Electron suggests the AI investment cycle is continuing to support the semiconductor supply chain. The bigger picture: AI demand is benefiting more than just chip designers. Equipment suppliers like Tokyo Electron are also positioned to benefit as manufacturers expand capacity. The key question is whether this spending momentum can continue into next year.read more
One overlooked opportunity for $NBIS, $CRWV and $DOCN is revenue per megawatt. The opportunity isn’t just adding more AI compute capacity — it’s earning more from every megawatt through better utilization and higher-value services. DigitalOcean currently leads on revenue per MW, while CoreWeave and Nebius have room to improve as utilization grows and inference services expand. If all three move toward the projected $25M per MW by 2035, the upside could come from efficiency, not just expansion. The next AI infrastructure race may be about monetizing capacity, not simply building it.
$AMZN, $GOOGL, $MSFT and $META are all investing heavily in AI, and their earnings increasingly validate that demand is real, revenue is growing, and profitability is improving. But the biggest question for investors isn't whether AI will be transformative. It's whether the incremental earnings and free cash flow will ultimately justify the hundreds of billions being spent on infrastructure. My stance? I’m still bullish on these companies and continuing to buy, but I’m being more disciplined with my entry prices.
$GIB.A - Weekly CGI looks very constructive. After the Stage 2 breakout, price is now pulling back in an orderly fashion and holding the breakout structure well.
Timberrrrrrrr!! PUMPED I got paid today. I ❤️ buying dips. Nasdaq in deep decline everything on sale or will it get worse? Is US striking Iran this weekend? Who all is buying this dip? Happy Friday! $AMZN$AAPL$META$TSLA$AVGO$QQQM$QQQ$VOO$NVDA$PLTR$MU$COIN
Chips led Friday's selloff, and it was not just one stock. Intel guided to fourth quarter revenue of $15 billion to $16 billion, below the roughly $17.1 billion analysts expected, and warned PC demand stays weak. Its shares fell about 29% on Friday, and the whole chip sector fell with it. Here are 4 worth researching. 👇 📌 The Watchlist 1. SanDisk | $SNDK: SanDisk makes flash memory and storage used in data centers and devices. Its fiscal first quarter revenue rose 378% from a year earlier to $11.03 billion, data center revenue surged to $4.8 billion, and it announced an eight for one forward stock split, yet the shares still fell about 13% on Friday. 2. Micron Technology | $MU: Micron makes memory chips used in AI servers and devices. Memory demand from AI data centers has driven a huge run in memory stocks over the past year, yet Micron fell about 7% on Friday as even a rival's strong report failed to lift the group. 3. Advanced Micro Devices | $AMD: AMD makes processors for PCs and servers, competing with Intel in both. AMD reports quarterly results on November 3, with analysts expecting revenue of about $13.09 billion, so Friday's fall of about 10% sets up a direct test of the PC weakness story. 4. Broadcom | $AVGO: Broadcom makes custom AI chips and networking equipment for large data center customers. It fell about 5% on Friday in the wider semiconductor retreat, and William Blair trimmed it to Market Perform, citing valuation risk. 📌 The Part Worth Saving A sector wide fall is a reason to research, not a reason to buy blindly. Look for: - Whether the problem is company specific, like Intel's PC guide, or sector wide - Whether guidance, not the past quarter, is what moved the stock - Whether memory prices are helping or hurting PC demand - What the next catalyst is, starting with AMD on November 3 The best question: Is Friday's chip fall a warning about AI spending, or a PC problem in an AI costume? Education only, not financial advice.read more
A couple months ago, a built a tool to help me find undervalued stocks and to help test it out, I decided to invest based on its fguidance. The purpose of this fund is simply to invest in undervalued stocks. Here are the stocks I bought and how they’ve performed! - Qualcomm (+11%) Arguably the strongest position I have in my new portfolio. - SoFi (-9%) Just announced a strong earnings beat but stock is still down almost 40% YTD - Kinder Morgan (+7%) Also just announced an earnings beat which sent the stock up. - Constellation Energy (-4%) Recently announced new deals with Amazon, Google, and received a $5B loan from the department of energy to help increase nuclear output. Overall it has been a fun experiment so far and I have plenty of other stocks in my watchlist. Do you invest in any of these? read more
It's never fun to watch your largest position crash 13% after the earnings. Personally, I have seen this so many times, and I have developed the habit to read the earnings report first, reaching my own conclusion before looking at the market reaction. I see Google's revenue continue to accelerate, growing 25% compared to 24% last quarter and 16% a year ago. Operating income increased 30% to 40.5 billion, with operating margin expanded 1%. Free cash flow is negative due to heavy capex. Earnings are down caused by a large investment loss, unrelated to the business operations. And increased depreciation charge, which is expected with the significant cloud investment. Google Cloud growth rate accelerated again to 103%. This is highly impressive, and as a long term investor, I'd like to see them invest into this growth as much as they can, which is exactly what the management is doing with the capex spending. A more valid concern is the deceleration of ad revenue growth, which has slowed for 2 consecutive quarters. This is caused by lower rate of monetization of AI searches and it makes sense as people is clicking less into websites if they get the answers right away. That said, people's habit is very difficult to change, and I expect continued growth of Google search usage for the foreseeable future. As long as Google can continue to grow the search volume, they should be able to find a way to more effectively monetize it in the future, but it will take some time. Even if they fail to improve the monetization, they still have the Cloud and subscription business to offset the slower growth. Despite slower growth, Google ad revenue still grew 11%, which is not bad at all at Google's size. Overall, I think this is a great report if you believe in their AI investment. I personally do as I've seen how AI completely change the way I work as a software engineer in less than a year. Now I can't imagine how I can work effectively without it. I think AI is here to stay, so I will continue hold my Google position for the long term.
Week 27 of the $1K → $1M Stock Flipping Challenge 📈 Current trade: Oracle Corporation Starting balance: $1,000 New balance: $872 Goal: doubling my money every time until I reach $1M It’s not about hitting home runs — it’s about consistent growth and smart trades. I buy great stocks that I believe are undervalued and wait for them to go up 100%. Then I sell and buy the next stock with the amount accumulated until i complete 10 trades. That would give me $1M starting with only $1,000. You think I can pull this off? Week 27 is in the books. Let’s see what Week 28 brings. Follow the journey 📊 $ORCLread more
— For the past two years, almost every big tech stock went up because of AI. All people cared about was sales growth. That just changed. The stock market is no longer treating all tech companies the same. Now, investors are asking one simple question: Can the company pay for its own AI buildout, or does it need to borrow money? Looking at the Real Numbers Here is what happened in the latest earnings reports: 1. Microsoft ($MSFT): Made $18.6 billion in free cash flow. Its cloud business grew fast, and it easily paid its own bills using its own cash. 2. Meta ($META): Saw its cash flow turn negative by $2.12 billion as spending went up. 3. Alphabet / Google ($GOOGL): Spent $51.4 billion on new equipment and AI buildouts. That was more than the cash its business brought in, leaving them -$9.1 billion in negative cash flow. To cover the bill, they had to borrow money and sell more stock. Did You Know? Last quarter, Google spent more money building AI than its entire business made from daily operations! When a company spends more than it earns, it has to borrow money from banks or sell extra shares to pay the bills. What This Means for Us 1. Cash is King: Companies that pay their own way using real profit will likely perform better than companies that have to borrow money. 2. Growth Isn't Everything: A company can grow its sales, but if the cost to grow wipes out its bank account, the stock can still fall. 3. What You Can Do: Always check the Free Cash Flow line on any tech stock you own. If that number is negative, the company is using borrowed money to keep up. What is your strategy right now? Are you sticking with cash-rich companies like $MSFT, or buying the dip on high spenders like $GOOGL and $META? — This is for informational and educational use only and it is not a financial advice. read more
Adding to my GOOGL position with a sizable purchase. I think the market is getting too caught up in the headline EPS figure, which was impacted by unrealized losses tied to its SpaceX investment. Meanwhile, the underlying business continues to demonstrate impressive growth and operating leverage. Still plenty of reasons to remain bullish!
How big is the AI build-out, really? Bigger than the telecom boom at its peak. Smaller than the railroad boom. And on one Brookings projection, on track to pass every boom in US history. I went through the SEC filings and the historical record to separate today's spending from the forecast. Full analysis: https://stockassembler.com/blog/17171755-7204-49ca-bfb4-39daa0cda9df $QQQ$MSFT$GOOGL$NVDA
After $GOOGL and $NOW tanked markets today, its $AMZN's turn to deliver more bad news !! Both revenue and earnings were a miss !! Even $INTC reported bad results. Amazon is down almost 7% and Intel 20%. Expect red to continue tomorrow as well !!
A little bit ago I posted this chart on Amazon, discussing the long term trend line that has held since the low pivot of the dot.com bubble bursting. With the drop after earnings the AH price dropped to under $231 where the trendline sits (purple). I added 7 shares to my already overweight position at around $227 on the suspicion that despite the after hours volatility the price would likely hold. And so far my prediction as a bounce on that support has been confirmed, with buyers immediately stepping in once the market opened to buy the dip and keep the price above support. While there is no guarantee support will hold, the odds favour staying at support and moving higher from here. Happy Investing all! Original Post: https://link.blossomsocial.com/7uYa/hi23i59e Link to Gareth Soloway who I've been learning technical analysis from: https://youtube.com/@garethsolowayprotrader?si=eE8w8wx4CxhorKN4 $AMZNread more
This market is so dramatic it’s actually hilarious. You’re telling me $NOW, a company used by over 85% of Fortune 500 businesses, just reported 20.5% YoY revenue growth, raised its full-year subscription revenue outlook, and fell almost 30%!? That’s wild. $GOOGL is getting punished too, despite some incredible growth in its cloud business. Now, I understand there are reasons. Earnings misses, slowing growth expectations, AI disruption fears, interest rates, and valuations that leave very little room for disappointment. But it’s fascinating how we’ve reached a point where a company can deliver 20-100%+ growth and still lose a quarter of its market value almost overnight. It’s almost as if the market isn’t asking whether a company is performing well anymore. It’s asking whether it’s performing beyond what we would even consider an expection. At what point does this become an overreaction rather than a rational repricing?read more
